Stocks up on rate cut hopes, Kepco leads rise

Stocks closed higher Tuesday on hopes that monetary easing around the globe will accelerate and trade talks between the United States and China will get back on track. The won lost against the dollar.

The benchmark Kospi rose 8.11 points, or 0.39 percent, to close at 2,101.45. Trading volume was moderate at 620.16 million shares worth 4.52 trillion won ($3.83 billion), with losers outnumbering gainers 515 to 289.

The index recovered above the 2,100 level as investors were digesting a slew of quarterly results, amid hope that the U.S. Federal Reserve and the European Central Bank will cut interest rates to support economic growth.

Investors were also keeping an eye on Japan’s move to expand its export restrictions on Korea, which could affect the high-tech industry of Asia’s fourth-largest economy.

“Shares of Korean chipmakers drove up the local stock market, led by foreign buying,” said Seo Sang-young, an analyst at Kiwoom Securities.